Financial freedom – how Venkat is achieving it

April 24, 2019

by
Team Cube

This is Venkat. His goal is to create wealth for a stress-free life with financial freedom. A life with minimal debt, cash for his child’s education, lots of international travel and always having enough for emergencies.

Venkat returned to India after spending the last 14 years in the US working in the public water sector. It was the right time to come home to Mumbai for his wife and son.

Within the Water sector, Venkat held roles from business development, strategy, technology, planning, and asset management.

Venkat's investing history pre Cube Wealth

In the US, Venkat initially invested in mutual funds online. He invested in a US retirement plan. A company sponsored 401K which include mainly US equity. Later, he also invested in Index funds (US indices) to fund some short term goals like vacations and weddings.

He used apps/platforms such as Robinhood, Charles Schwab, Mint.com, etc which he found via self-research. He enjoyed the simplicity of online investment options. Venkat only invested in Mutual Funds due to visa restrictions as an Indian citizen in the US. On the bright side, Mutual Funds in the US are simple to invest in. Overall his US portfolio returns 5 to 8%. Not exactly enough to create financial freedom.

The cold hard facts

Venkat took the opportunity to invest while in the US. He invested in what was available to him and enjoyed the convenience of online investing. He’ll use these investments for retirement. Coming back to India, he was faced with the challenge of finding quality advisors and online options.

“I believe strongly in the Indian growth story and wanted to invest here. I have my US investments to in place. These will compound. My focus is on what my Indian investments can achieve.

In India I struggled to find quality advisory. Most online options in India are only mutual funds. My wife and I wanted certainty we’d achieve our financial goals. We believe that equity is the right investment for us. Comparing options is complicated when you aren’t an expert. I felt we were taking a step backward meeting advisors that never gave us confidence.”

Venkat's Cube for financial freedom

Why these investments for financial freedom?

Let’s start with the long term financial goals Venkat wants to achieve; Financial freedom and education funds for his children. The proven way to create long term wealth is to invest in quality equity. By using Cube Wealth, Venkat achieved objective of quality advisory and investing in equity. By quality advisory, it’s hard to beat an equities advisor with 44.25% annual average returns over the last decade. Adding Mutual Funds – Equity, has enabled further diversification in the Indian stock market. Venkat opted for the moderate risk category for balance.

For the short term goals of travel and always having enough to deal with life’s unexpected expenses, Venkat selected Liquid Funds and Receivables Financing. He’s kept ahead of the rate of inflation in India by earning 7% with his Liquid Fund. He has the flexibility to withdraw up to ₹50,000 in 30 minutes and has no lock-ins. His Receivables Financing investment means that he’s earning 13% to fund his travels. He can redeem these funds in 3 days without penalty.

Why did Venkat become a Cube Wealth member?

“I liked the fact I could still invest online after doing it in the US. The convenience of having so many investment options in the one app made Cube Wealth a no brainer for me. I could check the performance of each advisor. I liked how Cube has a limited selection because they’ve done all the research.

It’s easy for me to stay disciplined with investing with portfolio tracking and automated investing. Any issue I’ve had, the Cube Wealth team are fast to respond back on my private WhatsApp group. They’ve always been available to call when I’ve had more detailed questions.

They added ELSS tax saving mutual funds right at the time I needed this option. I’d also never heard of Receivables Financing either. I was happy to try it for the 13% returns.

Also, all the investments are under my control. I sell my investments using Cube if I feel the need to.”

Summary

1. Investing in India is wise because the market is set for exponential growth. Investing in quality is key to create long term wealth.

2. You can invest online safely and don’t need multiple apps to for different investments when you use Cube Wealth.

3. If you’re like Venkat and have come home to India, let us help achieve your financial goals stress free.

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